Solana price breaks below key support, analysts warn of further downside

Solana price has entered a high-risk zone after falling below a major support level that had held since February, exposing the token to further downside. According to data from crypto.news, Solana ($SOL) traded near $73 on June 4 after shedding more than 12% over the past week. The token slipped below the long-standing $76.6 support zone — a level that had contained downside moves since February — while daily trading volumes picked up as selling pressure intensified across the broader crypto market.

The decline arrived as derivatives traders unwound heavily leveraged bullish positions. Earlier this week, more than $3.8 million in SOL long positions were liquidated within hours after a modest pullback triggered cascading margin calls across perpetual futures markets. The forced selling coincided with a broader crypto market rout that erased roughly $1.8 billion in leveraged positions after Bitcoin fell below the $66,000 threshold. A familiar story for anyone who has been around for more than one cycle.

At the same time, risk sentiment deteriorated across financial markets following renewed geopolitical tensions in the Middle East. Higher oil prices and growing concerns over prolonged regional instability pushed investors toward safer assets, adding pressure to cryptocurrencies and other risk-sensitive markets.

Meanwhile, attention has also shifted to institutional activity after Strategy disclosed a rare Bitcoin sale, breaking a four-year accumulation streak. The move rattled crypto markets and contributed to fresh concerns about liquidity conditions at a time when ETF flows have remained weak and central banks continue to maintain restrictive monetary policies.

Solana charts flash multiple bearish signals

Technical indicators have deteriorated sharply following the latest breakdown. Solana has now fallen below both its 50-day and 200-day simple moving averages, which sit near $83.4 and $85.9, respectively. The failure to reclaim those levels has left bears firmly in control of the short-term trend. The daily chart also shows a completed double-top pattern that formed between March and May, with peaks near the $97 area and a neckline around $76.6. The recent breakdown below that neckline confirms the structure and opens the door to a measured move toward the low-$50 region if sellers maintain control.

Momentum indicators continue to favor the downside. The MACD has crossed deeper into negative territory while histogram bars remain below the zero line, highlighting persistent bearish momentum. Although the 14-day RSI has dropped into oversold territory near 25, buyers have yet to establish a convincing rebound. Apparently, oversold is the new sideways.

Commenting on the setup, crypto analyst Daan Crypto Trades noted that many altcoins are showing structures similar to Solana after losing multi-month trading ranges. "Good setups would start unfolding upon retaking those local ranges which could then be played up to the range high or above." The analyst suggested bulls must first reclaim the broken support zone before a sustainable recovery can develop.

According to crypto analyst CryptoBullet, the latest breakdown has completed a large range structure that could expose SOL to a move toward the $50-$55 region. The analyst described the token as "absolutely cooked" and warned traders to prepare for a larger downside extension if support fails to return.

Stablecoin growth offers a longer-term counterweight

Despite the weak price action, network activity remains resilient in one of Solana's most important growth segments. Mastercard recently selected Solana as one of eight blockchain networks tha